How digital technologies are helping grow a balance sheet by £1 billion
Digital technologies have transformed banking, offering customers new ways to access products and manage their money. In this environment, our client, a niche bank with a diverse set of retail and commercial products, needed to establish a robust digital strategy to compete effectively and achieve their growth ambitions.
The bank’s target was to double the balance sheet in just five years. To do this, they wanted to pursue new markets beyond their existing customer base. But their distribution channels were limited, with almost no digital offer to speak of. The bank’s website, for example, focused largely on providing information, but didn’t allow customers to transact or self-serve.
KPMG worked with the bank to develop a digital strategy to transform their ability to service existing customers, reach new market segments and increase their appeal to future customers.
Our starting point was a comprehensive review of their current digital maturity. This included an analysis of how customers could currently access products and services, and an assessment of how the bank compared with some of its peers. Then we looked to the future. How did the bank want to be able to serve customers or, rather, how did customers want to engage with the bank? And what capabilities – people, processes, technology and data – would they need to realise this vision?
Building on this carefully structured work, carried out as part of a joint project team, we developed a comprehensive digital strategy which was informed and aligned with the bank’s overall growth plan. This comprised a clear set of objectives for digital investment and a three-year road map and supporting investment case, with clear priorities set for the next 12-month period. On presentation to the board, our proposals were quickly given the green light and investment approved.
The bank is now progressing with the first of these digital initiatives – building an end-to-end capability to allow retail customers to make deposits online. Other initiatives planned as part of the first tranche of projects include establishing a social media presence for the bank, redesigning the website as well as other third party engagement technologies.
These new digital capabilities will be integral to our client’s ability to realise their five-year growth plan and achieve specific objectives such as enhanced customer experience, channel choice, making the back office more efficient and improving its brand positioning.
With KPMG’s help, our client has embarked on a digital transformation that is designed to drive future growth and transform the way in which the organisation delivers change through new structures and competencies.